Kentucky Revised Statutes

Ky. Rev. Stat. § 355.4-213 (2026)

Medium and time of settlement by bank

✓ current as of May 2026

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(1) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or agreement. In the absence of such prescription:

(a) The medium of settlement is cash or credit to an account in a Federal Reserve bank of or specified by the person to receive settlement; and

(b) The time of settlement, is:

1. With respect to tender of settlement by cash, a cashier's check, or teller's check, when the cash or check is sent or delivered;

2. With respect to tender of settlement by credit in an account in a Federal Reserve bank, when the credit is made;

3. With respect to tender of settlement by a credit or debit to an account in a bank, when the credit or debit is made or, in the case of tender of settlement by authority to charge an account, when the authority is sent or delivered; or

4. With respect to tender of settlement by a funds transfer, when payment is made pursuant to KRS 355.4A-406(1) to the person receiving settlement.

(2) If the tender of settlement is not by a medium authorized by subsection (1) of this section or the time of settlement is not fixed by subsection (1) of this section, no settlement occurs until the tender of settlement is accepted by the person receiving settlement.

(3) If settlement for an item is made by cashier's check or teller's check and the person receiving settlement, before its midnight deadline:

(a) Presents or forwards the check for collection, settlement is final when the check is finally paid; or

(b) Fails to present or forward the check for collection, settlement is final at the midnight deadline of the person receiving settlement.

(4) If settlement for an item is made by giving authority to charge the account of the bank giving settlement in the bank receiving settlement, settlement is final when the charge is made by the bank receiving settlement if there are funds available in the account for the amount of the item. Effective: January 1, 1997 History: Repealed, reenacted, and renumbered as KRS 355.4-213, 1996 Ky. Acts ch. 130, sec. 95, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-211, effective July 1, 1960. Formerly codified as KRS 355.4-211. History for former KRS 355.4-213: Repealed, reenacted, renumbered as KRS 355.4- 215, and amended, 1996 Ky. Acts ch. 130, sec. 97, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-213, effective July 1, 1960.

Notes of Decisions

Cited in 2 cases, 1977–1982 · leading case: Blake v. Woodford Bank & Trust Co., 555 S.W.2d 589 (Ky. Ct. App. 1977).

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Blake v. Woodford Bank & Trust Co., 555 S.W.2d 589 (Ky. Ct. App. 1977). · cites it 2× “4-301(1) provides: “Where an authorized settlement for a demand item (other than a documentary draft) has been made before midnight of the banking day of receipt the payor bank may revoke the settlement and recover any payment if before it has made final payment (subsection (I)…”

Huntmix, Inc. v. Bank of Am., 34 U.C.C. Rep. Serv. (West) 617 (Cal. Ct. App. 1982). “) 12 “KRS 355.4-213 provides in part: ‘“(1) An item is finally paid by a payor bank when the bank has done any of the following, whichever happens first: ‘“(d) made a provision [sz'c] settlement for the item and failed to revoke the settlement in the time and manner permitted by…”

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